The Commissioner Of Income Tax, Chennai v. M/S.sundaram Bnp Paribas, Home Finance, Sundaram Towers

In the High Court of Judicature at Madras Dated : 28.08.2019 The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.681 of 2018 The Commissioner of Income Tax,Chennai....AppellantVs M/s.Sundaram BNP Paribas,Home Finance, Sundaram Towers,46, Whites Road, Chennai - 600 014.PAN: ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 19.12.2016 made in ITA.No.1981/MDS/2014 on thefile of the Income Tax Appellate Tribunal, Chennai 'D' Bench forthe assessment year 2005-06, against the order of theCommissioner of Income Tax (Appeals)-VI, Chennai order dated31.03.2014 made in ITA.NO.783/13-14-A-VI and against the orderof the Assistant Commissioner of Income Tax Company Circle-VI(4), Chennai order dated 26/12/2007 for the Assessment year2005-06. For Appellant: Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani For Respondent: No appearance JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel, assisted by Ms.K.G.Usharani, learned counsel appearingfor the appellant/revenue. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated19.12.2016 made in ITA.No.1981/MDS/2014 on the file of theIncome Tax Appellate Tribunal, Chennai 'D' Bench for theassessment year 2005-06. 1/3 https://hcservices.ecourts.gov.in/hcservices/ 3.The appeal has been filed by raising the followingsubstantial questions of law : “(i) Whether on the facts and in thecircumstances of the case, ITAT was right inholding that the interest earned by the assesseecompany for the SLR investments is eligible fordeduction u/s.36(1)(viii)? (ii) Whether on the facts and in thecircumstances of the case, the Tribunal wascorrect in directing the Assessing Officer to"net interest" as against "gross interest" forthe purpose of computation of deduction u/s.36(1)(viii)?" 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019dated 08.8.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 Crore.It is further submitted that the tax effect in this case is lessthan the threshold limit. 5.In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeal to be heard and decided onmerits. No costs. Sd/- Assistant Registrar(CS VI) //True Copy// To 1.The Income Tax Appellate Tribunal, Chennai 'D' Bench. 2.The Commissioner of Income Tax(Appeals)-VI,Chennai-34. 2/3 TCA.No.681 of 2018 cp(co)nr 01/11/2019 3/3